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GR Engineering (ASX:GNG) secures Oz Minerals (ASX:OZL) contracts worth $312m

ASX News, Materials
ASX:GNG      MCAP $372.2M
14 April 2023 15:58 (AEST)

Source: Oz Minerals

GR Engineering (GNG) has secured two contracts to design and construct a processing plant at Oz Minerals (OZL) West Musgrave project in Western Australia.

The contracts are expected to bring in $312 million in revenue for GNG over a two year period.

GNG will provide engineering design, drafting, project management and commissioning. This comes alongside structural, mechanical, piping, electrical and instrumentation construction works.

Its wholly owned subsidiary, Mipac, will also step in to provide specialist electrical and instrumentation services.

Having previously worked with Oz Minerals, GNG’s Managing Director Tony Patrizi said the new contracts were a “strong endorsement” of the company’s proven delivery capabilities.

“We are pleased to have been engaged by OZ Minerals to play a key role in the delivery of the world-class West Musgrave project.

“We look forward to continue working collaboratively to deliver a safe and successful outcome,” Mr Patrizi said.

The proposed project is 1300 kilometres northeast of Perth, near the border with South Australia and Northern Territory.

Oz Minerals said it is set to be one of the “largest, lowest cost, lowest emissions copper nickel projects.”

GNG shares were up 3.27 per cent at $1.90, while OZL shares were down 0.04 per cent at $28.16 at 3:55 pm AEST.

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